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About 150 Cadillac dealers would rather leave the brand than sell EVs

Dealerships might hamper GM’s plans to electrify its cars. Wall Street Journal tipsters claim that roughly 150 GM dealerships in the United States have decided to drop the Cadillac brand and accept a buyout (ranging from $300,000 to over $1 million) rather than spend about $200,000 to upgrade the dealerships with charging stations, repair hardware and other equipment needed to sell EVs. Many of these dealerships only sell a few Cadillacs per month versus more for Buick, Chevrolet and GMC, but itÂ’s still a significant blow when GM has 880 Cadillac dealers in the country. Cadillac brand leader Rory Harvey confirmed to the WSJ that GM was offering buyouts, but didnÂ’t say how many dealers took them or how much they were worth. The exodus underscores the challenges for conventional car brands as well as the potential advantages for alternatives like Tesla. As brands like GM are heavily dependent on dealerships, they have to please owners to have a chance of strong sales — and thatÂ’s difficult when theyÂ’re not certain about demand, even without the pandemic. Tesla and other direct-to-customer EV makers arenÂ’t bound by physical stores and already have the infrastructure in place for service centers. Dealers might not have much choice in the future. California is banning sales of new gas-powered cars by 2035, and that will likely force automakers to electrify no matter how dealership owners feel. The buyouts now arenÂ’t necessarily temporary, but we wouldnÂ’t rule out some shops having a change of heart as the effective EV deadline approaches. Related video:

Cadillac could base its entry-level sedan on the Chevy Cruze [UPDATE]

UPDATE: Cadillac spokesperson Donny Nordlicht tells Autoblog , "The post speculating on a future Cadillac model derived from the Chevrolet Cruze is completely false." Premium automakers Mercedes-Benz and Audi have seen plenty of success with new small front-drive-based sedans. The CLA-Class had its best January ever this year, while Audi moved more of its new A3 in 2015 than its predecessor sold in 2005 through 2010 combined. The fact that Cadillac wants a piece of that pie is no surprise, then. There's a new rumor that GM's luxury brand could launch its own compact – possibly called CT2 – to battle the Germans. Cadillac, a brand that's pushed hard to rebuild its rear-drive reputation, could develop a new entry-level model based on the front-wheel-drive 2016 Chevrolet Cruze's D2XX platform. Go ahead and make your Cimarron jokes. Sources are telling GM Inside News that a Cadillac built on the Delta platform would ditch the Cruze's turbocharged 1.4-liter four-cylinder for a 1.5-liter turbo in base models. General Motors' well received 2.0-liter turbo four would serve in higher-end models. According to GMIN, the Delta-based Cadillac would likely command a $6,000 to $9,000 premium over the Cruze, so figure $23,000 to $26,000 on the low end to $30,000 to $33,000 for something at the top of the range. As much as we dislike the kind of badge engineering that brought us the Cavalier-based Cadillac Cimarron in the '80s, the company has done an admirable job of distinguishing vehicles on shared platforms lately. A Delta-platform Cadillac would at least have a good basis – the new Cruze is surprisingly comfy. That said, we question GM's rationale if this rumor is indeed true. Put simply, Cadillac needs another sedan like I need another student loan payment. The company has four sedans, three of which overlap two segments, and none of which are selling very well. That's not because they're bad, but because customers want crossovers, of which Caddy has but one – the new XT5. Spending the time and money to add a fifth sedan to the mix when the company desperately needs to flesh out its CUV range would be a tremendous mistake. As much as we hate to say it, if Cadillac really wants to add a small, entry-level car to its range, it'd better be a crossover. Related Video:

2021 Cadillac Escalade, GMC Yukon, Chevy Suburban/Tahoe recalled for stall risk

General Motors is recalling just shy of 15,000 2021 Cadillac Escalade & Escalade ESVs, Chevrolet Suburbans and Tahoes, GMC Yukons and Yukon XLs that were shipped with fuel pumps that were built with a batch of what may be faulty electronic control modules. A pump with a bad module can result in intermittent function, resulting in drivability issues and potential stalls. No serious incidents or injuries have been associated with the issue.  GM says it discovered the issue after analyzing early recall data for the 2021 model SUVs and discovering an unusually high failure rate for fuel pumps manufactured by a single supplier – Vitesco. The company was able to identify the batch and initiate a recall campaign targeting just those vehicles.  "After reviewing the field data, GM determined there were 617 potentially relevant complaints, which were received between April 15, 2020 and August 24, 2021," the company's recall report said. "229 of these complaints reported a stall while standing or moving. No accidents or injuries associated with this condition were found." Any SUVs built with pumps from that batch but not yet sold are being held at dealers for replacement parts. It may take some time for GM to source replacements due to the ongoing electronic parts shortages.  "We are working with the supplier to obtain the required parts as quickly as possible," GM said in its notice to dealers. "When sufficient quantity of parts are available, the recall bulletin will be released and dealers can begin repairing vehicles."